Insurance availability is surfacing in state races ahead of the 2026 midterm elections as homeowners confront premiums, non-renewals and coverage restrictions that increasingly affect where they can afford to live.
The pressure extends beyond the most catastrophe-exposed communities. The Federal Reserve's Survey of Household Economics and Decisionmaking, fielded in October 2025, found that 6% of homeowners went without homeowners insurance, mostly because of cost. Among insured homeowners, 20% said they could not afford as much coverage as they wanted, while 14% struggled to pay their premiums.
Florida has the country's highest average home insurance premiums, and the issue has featured in both its Senate and gubernatorial contests. The debate centres on whether recent litigation reforms have delivered sufficient relief or whether further intervention is needed.
There are signs of improving availability. Citizens Property Insurance reported 266,117 policies in force as of September 4, down from a peak of approximately 1.4 million in September 2023. Its homeowners multiperil rates are falling by an average of 8.8% in 2026. Premiums nevertheless remain prohibitively high for many households.
Other catastrophe-exposed states are testing different combinations of rate reform, insurer incentives and consumer protections:
|
State |
Market and reform position |
What agents and brokers should watch |
|---|---|---|
|
Florida |
Citizens' policy count has fallen to approximately 266,000, while its 2026 homeowners multiperil rates are declining by an average of 8.8%. |
Compare private-market takeout offers with Citizens coverage, deductibles and exclusions rather than focusing solely on premium. |
|
California |
Eleven insurance groups have committed to remain or expand under reforms allowing catastrophe models and reinsurance costs to influence rates. |
Track new admitted capacity in wildfire areas, mitigation requirements and the circumstances in which clients still need FAIR Plan or surplus lines coverage. |
|
Texas |
The governor said average annual homeowners premiums increased 79% over six years. Regulators have reiterated that price optimization is prohibited. |
Review rating information and explain the risk factors behind increases, cancellations or non-renewals. |
|
Louisiana |
Individual filings show movement in both directions: CURE completed a 10% homeowners reduction, while USAA completed a 9.2% increase. |
Start renewal conversations early and avoid presenting statewide improvement as evidence that every client will receive relief.
|
California voters will elect a new insurance commissioner as the state continues implementing its Sustainable Insurance Strategy. The California Department of Insurance has reported new or expanded appetite from carriers including Liberty Mutual, USAA, PURE and MS Transverse, but availability remains uneven in wildfire-distressed areas.
Texas has also placed insurance affordability on its political agenda. Governor Greg Abbott has directed regulators to examine property insurance costs and said he would work with lawmakers on further consumer protections. The Texas Department of Insurance recently reminded carriers that using factors unrelated to risk to determine what an individual customer might tolerate paying is prohibited.
Robert Hartwig, clinical associate professor of finance and insurance and director of the Risk and Uncertainty Management Center at the University of South Carolina, warned during a webinar hosted by the Travelers Institute, the public policy division of Travelers, that underlying claims costs may keep affordability in the political spotlight.
As a result, brokers and agents will increasingly encounter clients looking for immediate savings, including some who may consider reducing limits or dropping optional coverage without understanding the exposure they retain.
"The same inflationary factors that drove up the price of groceries: the supply chain disruptions and, most recently, the tariffs that have driven up literally the cost of everything insurers use to repair your homes and vehicles," Hartwig said.
"Consumers are going to be looking for ways to economize. Coverage is still necessary, but they are going to be looking to their agents as somebody who can take a look at their coverages."
The political dimension could add further complication. Clients who have heard candidates promise rate relief may arrive at renewal expecting reductions that filings have not yet produced, or that apply to a line or a territory other than their own. Setting expectations early is more effective than correcting them after a renewal notice arrives.
Brokers can prepare by reviewing replacement-cost estimates, deductible options and mitigation credits before renewal, rather than waiting for a substantial increase or non-renewal notice. They should understand the eligibility and coverage limitations of residual-market programs, document unsuccessful placement attempts and discuss flood or wind protection that may sit outside a standard homeowners policy.
Where admitted carriers continue to restrict appetite, business displaced from the standard market will keep moving into residual-market programs and surplus lines. Brokers placing homeowners risks on a non-admitted basis should document the diligent search, explain the absence of guaranty fund protection and set out the form differences clients are accepting alongside any premium saving.
